Halifax £5.00 bonus payment

Hi

What on earth do you do with this monthly payment that the Halifax pays individuals on the SA tax return?

Treat it as gross interest received or other income?

I see that the Halifax make a note that there may be tax on this if you are a higher tax rate payer

Urgh...

Comments

  • qwerty
    qwerty Registered Posts: 82 ? ? ?
    The £5 bonus is net of tax (£6.25 gross). It should be shown on the tax return together with any other interest received in the year.

    For higher rate tax payers, because only 20% basic rate tax has been deducted, another 20% (£1.25) tax will be due. For taxpayers with low income (below personal allowance) the £1.25 can be reclaimed.

    This is a great deal from HBoS - free money, can't complain about that.
  • burg
    burg Moderator, FMAAT, AAT Licensed Accountant Posts: 1,441
    Poodle wrote: »
    Hi

    I see that the Halifax make a note that there may be tax on this if you are a higher tax rate payer

    Urgh...

    See at the bottom of this page https://www.halifax.co.uk/bankaccounts/account-fees-and-reward-payments.asp.

    Its £6.25 gross with 20% tax deducted so I would say it's interest received.
    Regards,

    Burg
  • Poodle
    Poodle Registered Posts: 711
    Very much appreciated guys,

    TY :)
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